Axis-Tishman Speyer's commercial real estate fund acquires 1.5 acre land parcel in Chennai Fintech City
The 1.5-acre plot will be developed into a 4 lakh square feet Grade A office building within the next three years, the company said.
Axis Commercial Real Estate Fund, a partnership between Axis Asset Management Company Limited (Axis AMC) and real estate developer Tishman Speyer, has acquired a 1.5-acre land parcel in Chennai's Fintech City, the company said in a statement on August 12.
The 1.5-acre plot will be developed into a 4 lakh square feet Grade A office building within the next three years, the company said. Tishman Speyer is the development manager and will oversee design, development, leasing and property management.
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“Chennai investment is the epitome of the fund strategy; wherein a clear titled land parcel supported by single window clearance for approvals at city centric location has been acquired in a transparent manner by the fund,” said Chetan Shah, Head – Real Estate, Axis AMC.
As per Axis AMC, the acquisition was made through a bid cum e-auction process conducted by the Tamil Nadu Industrial Development Corporation (TIDCO).
“Chennai has emerged as an attractive location for multinational companies, including our customers within BFSI segments. We look forward to bringing our global expertise to this project,” said Parvesh Sharma, Managing Director and India Country Head for Tishman Speyer.
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This marks the inaugural investment from Axis Commercial Real Estate Fund, a Category II Alternative Investment Fund that concluded its fundraising in June 2024 with a corpus of approximately ₹550 crore, the statement said.
The Fund employs a strategy of participating in the development phase of commercial real estate projects through an alliance with Tishman Speyer, a global developer, owner, and operator of real estate. The fund's focus is on investing primarily in early-stage or green-field commercial real estate projects across eight key markets, with the goal of creating top-tier office spaces to attract leading tenants.
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Alternate Investment Fund
An alternate investment fund is a privately pooled investment vehicle (from Indian or foreign sources) that invests in alternative asset classes such as private equity or venture capital, hedge funds, real estate, commodities and derivatives. A category II AIF in India includes entities such as private equity funds or debt funds for which no specific incentives or concessions are given by the government or any other regulator.